OCR

Compania Utah, S. A. - a Mexican corporation, performed harbor work at Guaymas and Mazatlan and paving work at Obregon. Utah Australia Limited - a Nevada corporation operating in Australia, was formed during the year to conduct continuing construction activities in Australia and related areas. The Company had been successful in acquiring a good backlog of work in Australia, including contracts for the construction of a large shell loading plant, tunnel work, industrial plant construction, and dam construction. Utah also owned 12-1/4% interest in Utah Construction Limited, an affiliated company which had been sponsoring a joint venture for the construction of the Big Eildon Dam in Australia. Mining Income from mining continued to be an important factor in the net profits of the Company. Shipments of iron ore from the Iron Springs mine near Cedar City, Utah, and coal shipments from the Ozark-Philpott mine in Arkansas benefited from the high operating rate in the steel industry. Canadian Iron Ore Operations In February 1955, Argonaut Mining Co. Ltd. was merged with Utah Co. of the Americas and thereafter these two wholly-owned subsidiaries were operated as one company. During the year the Argonaut mine exported its output to the Japanese market and with increased efficiency from new milling processes, recorded a sizable improvement in profits over the previous year. Peruvian Iron Ore During 1955 Marcona Mining Company made further progress in extending its reserves, reducing its mining costs, and completing construction of additional housing for its personnel, schools for the children, and the installation of a seawater distillation plant. Cia. San Juan, S. A., which handled the sales and shipment of Marcona ore, took two important steps to attain shipping economies and greater control over shipping costs. Through its wholly-owned subsidiary, San Juan Carriers, Ltd., orders were placed for the purchase of two large specialized ore carriers which were being constructed in Japanese shipyards and would